FAO Food Price Index down for the second consecutive month

The FAO Food Price Index was down for the second consecutive month in May, continuing its retreat from the 10-month high it experienced in March.

The Food Price Index, based on the prices of a basket of internationally-traded food commodities, averaged 207.8 points in May 2014, down 2.5 points (or 1.2 percent) from April, and nearly 7 points, or 3.2 percent, below the May 2013 level.

The FAO Cereal Price Index averaged 204.4 points in May, down 2.4 points (or 1.2 percent) from April and 30 points (or 13 percent) below last year. The decline in May was mostly triggered by maize prices, which fell in response to favourable growing conditions and good supply prospects in 2014/15. Wheat prices, which had contributed to price increases in previous months, partly amid fears of disruptions to trade flows from Ukraine, also fell, while rice prices saw little change.